Relative Returns: Dotcom Fever Heats Up Growth Stocks

Starting in the mid-’90s, as capital poured into tech startups, and terms like “web browsing” and “e-commerce” entered our vocabulary, the U.S. economy boomed and investors counted on continued expansion.  

How did markets behave during this period? Which stocks overperformed? 

After the Federal Reserve, under Chairman Greenspan, assured it would continue to support the expansion fueled by venture capital and the tech frenzy, the difference in total return between growth and value stocks  was 73.21% (12/30/96 -12/31/99).   

Source: Bloomberg. Date Range: 12/31/93 – 12/29/00. The performance data quoted represents past performance. Past performance does not guarantee future results. One cannot invest directly in an index.

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